Board backs recommending Sonoma Water FY26–27 transmission budget and rate increase to WAC representative

Nick Harvey, deputy director of administration for Santa Rosa Water, and Jake Spaulding, Sonoma Water finance manager, presented Sonoma Water’s proposed FY26–27 water transmission budget and a wholesale rate proposal to the Board of Public Utilities and asked the board to recommend how the city’s Water Advisory Committee (WAC) representative should vote.

Spaulding said Sonoma Water faces rising operations and maintenance costs, multiyear capital projects and resiliency needs, and that its fully volumetric rate structure makes per‑unit costs sensitive to declining deliveries. Sonoma Water proposes rate increases between 8.21% and 8.97% across its three aqueducts, with Santa Rosa charged the lowest increase at 8.21% on the Santa Rosa Aqueduct.

After factoring Sonoma Water’s proposed wholesale increase and Santa Rosa Water’s local 6% increase, staff estimated an aggregate impact of about $5.33 per month for the typical family of four — an effective overall rate increase of roughly 6.4% for an average summer usage profile. Spaulding pointed to a total Sonoma Water program budget of about $78.4 million, offset in part with grants, use of fund balance and bond proceeds, and outlined capital projects focused on hazard mitigation, water‑treatment modernization and tank rehabilitation.

Board members praised the collaborative process with Sonoma Water and discussed rate‑stabilization tools such as the discretionary charge, grant offsets and the 20‑year financial plan that projects continued mid‑single‑digit increases. Several members asked about deliveries trends; Spaulding said deliveries have trended down over decades (noting about a 10.5% decline over a multi‑year comparison) and that future rate increases in the 7.4–7.9% range are projected for the next five years under current assumptions.

Board member Wright moved that the board recommend the city’s WAC representative approve the Sonoma Water budget and rate proposal; the motion carried 5–1 with Board member DeWitt voting no and Board member Bartholow absent.

What's next: the board’s recommendation will be communicated to the city council and its WAC representative ahead of the April 6 WAC meeting; Sonoma Water’s board of directors is scheduled to take action April 28, 2026.